Week Ahead: MPC needs inside dope on Greek election

1st Jun 2012 11:22

The first two days of next week the UK markets will be closed as part of the extended Diamond Jubilee celebration for Queen Elizabeth, and there is so little scheduled for the rest of the week that traders might be tempted to take the whole week off, were it not for the little matter of the Bank of England's Monetary Policy Committee (MPC) meeting.Last month, the situation was said to be finely balanced on whether to pour yet more money into the Bank of England's asset purchase scheme (also known as quantitative easing, or QE).This month things are likely to be made trickier still by the fact that the MPC, which is scheduled to announce its decision on its key interest rate and QE on Thursday, will not know the outcome of the Greek General Election, scheduled for June 17th.The outcome of that could have such a distorting effect on other European economies that the MPC may well be advised to add an experienced bookie or psephologist to its team, to try to predict the result.Some pundits have even suggested that a reduction in the interest rate is a possibility, even though the rate is at an all-time low of 0.50%.The majority of economists, however, seem to be expecting the status quo to be maintained, but it could be a close run thing.On the corporate front, platinum refiner Johnson Matthey issues full year results on Thursday. Market expectations are for profit before tax of £405.1m on revenue of £11,213m. Earnings per share are seen rising to 143.85p, paving the way for an increase in the full year dividend to 52.94p."Expectations for group performance are for 2H [second half] slightly ahead of 1H2012," reveals Charles Stanley analyst, James Dawson. "The outlook statement will be significant to gauge management's assessment on whether it anticipates any change to trading patterns, most probably expressed on a geographic basis," Dawson added.On Friday, house builder Bellway issues an interim management statement which Northland Capital Partners thinks should point to further growth. "A positive trading update from Bellway will keep our estimates well within reach given 94% of the target revenue for the full year is now in hand," the broker said."Growth is driven by increasing the number of available sites (215 targeted by early 2012) in optimal locations given Bellway's regional positioning and its 18,086 plot land bank. This offers continued margin recovery and 6% volume growth," Northland said, as it reiterated its "buy" recommendation.Monday June 04INTERIM DIVIDEND PAYMENT DATESmart (J) & Co.INTERNATIONAL ECONOMIC ANNOUNCEMENTSFactory Orders (US) (15:00)Goods Orders (US) (15:00)FINAL DIVIDEND PAYMENT DATEFujitsu Ltd.FINAL EX-DIVIDEND DATETangent Communications, Zhejiang Expressway Co 'H' SharesTuesday June 05INTERNATIONAL ECONOMIC ANNOUNCEMENTSPMI Composite (EU) (09:00)PMI Composite (GER) (08:55)PMI Services (EU) (09:00)PMI Services (GER) (08:55)Wednesday June 06INTERIM DIVIDEND PAYMENT DATEMatrix Income & Growth 4 VCT, SportingbetINTERIM EX-DIVIDEND DATEArtemis VCT, Associated British Foods, Cardiff Property, Debenhams, Grainger, Greencore Group, Jersey Electricity 'A' Shares, Noble Investments (UK), Northern Venture Trust, Renew Holdings, Scottish Inv Trust, Standard Life Equity Income Trust, VictrexQUARTERLY EX-DIVIDEND DATEBritish Assets TrustINTERNATIONAL ECONOMIC ANNOUNCEMENTSBeige Book Fed Survey (US) (19:00)Crude Oil Inventories (US) (15:30)ECB Interest Rate (EU) (12:45)Industrial Production (GER) (11:00)MBA Mortgage Applications (US) (12:00)PMI Construction (GER) (08:55)Productivity (US) (13:30)FINALSAllanfield Group, Nature Group, Printing.comANNUAL REPORTHambledon Mining, InternetQAGMSAfren, Datang International Power Generation Co Ltd., Duet Real Estate Finance Ltd, Exillon Energy, Mears Group, OAO OMZ (Uralmash-Izhora Group) ADR (Level 1) , Patagonia Gold, RuspetroUK ECONOMIC ANNOUNCEMENTSBoE Interest Rate Decision (12:00)BRC Shop Price Index (00:01)PMI Construction (09:30)FINAL DIVIDEND PAYMENT DATEHydro International, Michael Page International, Proven Planned Exit VCT, Sony Corp., SThreeFINAL EX-DIVIDEND DATEAberdeen New Thai Inv Trust, Anglo-Eastern Plantations, Big Yellow Group, Bioquell, Booker Group, Cello Group, Cineworld Group, Evraz, First Derivatives, Hunting, Intertek Group, Irish Continental Group Units, Judges Scientific, JZ Capital Partners Ltd, M&C Saatchi, Marshalls, Mckay Securities, Melrose Resources, Pace, Phoenix IT Group, Quarto Group Inc., Scisys, St Peter Port Capital Ltd, Vindon Healthcare, Vodafone Group, Young & Co's Brewery 'A' Shares, Young & Co's Brewery (Non-Voting), Yule Catto & CoThursday June 07INTERIMSRWS HoldingsINTERNATIONAL ECONOMIC ANNOUNCEMENTSBloomberg Consumer Confidence (US) (14:45)Consumer Credit (US) (20:00)Continuing Claims (US) (13:30)Initial Jobless Claims (US) (13:30)FINALSJohnson Matthey, Real Estate Credit Investments PCC Ltd, Synergy Health, WYGIMSSIntegra Group GDR (Reg S)SPECIAL DIVIDEND PAYMENT DATEOld MutualEGMSAshmore Global Opportunities Ltd GBP Shares, Bwin.party Digital EntertainmentAGMSAshmore Global Opportunities Ltd GBP Shares, Bwin.party Digital Entertainment, Camellia, Cayenne Trust, Corero Network Security, G4S, Golden Prospect Precious Metals Ltd., Himalayan Fund NV, Lamprell, Longships, Melrose Resources, Netplay TV, Oxford Biomedica, PowerFilm Inc. (Reg S), Tower Resources, Ukrproduct Group Ltd., WaterlogicUK ECONOMIC ANNOUNCEMENTSBoE Interest Rate Decision (09:30)BRC Sales Monitor (00:01)PMI Services (09:30)FINAL DIVIDEND PAYMENT DATEH&T Group, Konami Corp., Old Mutual, RexamFriday June 08INTERIM DIVIDEND PAYMENT DATESage Group, Smiths News, Spirit Pub CompanyQUARTERLY PAYMENT DATEBarclays, Honeywell International Inc., Lilly (Eli) & Co, M WinkworthINTERNATIONAL ECONOMIC ANNOUNCEMENTSBalance of Trade (GER) (07:00)Balance of Trade (US) (13:30)Current Account (GER) (07:00)Factory Orders (GER) (11:00)Retail Price Index (GER) (07:00)Wholesales Inventories (US) (15:00)GMSNorseman GoldFINALSHornbyINTERIM MANAGEMENT STATEMENTBellwayANNUAL REPORTElectrocomponentsAGMSJSC VTB Bank GDR (Reg S), M. P. Evans Group, Oxford Catalysts Group, Sterling Green Group, Volga GasTRADING ANNOUNCEMENTSSThreeFINAL DIVIDEND PAYMENT DATECape, Clarkson, F&C Private Equity Trust, Lighthouse Group, Macfarlane Group, Northbridge Industrial Services, Octopus Second AIM VCT, Porvair, Rightmove, TT Electronics, William HillJH